Continued execution and progression on strategic initiatives to reposition business for growth

DETROIT, Oct. 23, 2014 (GLOBE NEWSWIRE) -- Covisint Corporation (Nasdaq:COVS), provider of a B2B Cloud Platform that ensures trusted information gets where it needs to go securely and seamlessly, today announced financial results for the second quarter of its fiscal 2015 ended September 30, 2014.

"Covisint delivered solid results in the second quarter, where we saw continued positive momentum in our subscription business," said Covisint CEO Sam Inman. "We have made great progress in the execution of our strategic initiatives, and I am confident that we are building a strong foundation to drive our business forward. Everything and everyone in the world is becoming connected and this is creating a new class of winning enterprises. Enterprises are seeking to transform the way they do business, by providing a digital business advantage to those they do business with. We believe our B2B Cloud Platform provides what is needed for enterprises to deliver this advantage and that we are taking the right steps to capitalize on the tremendous opportunities ahead."

Second Quarter 2015 Financial Highlights

Revenues: Subscription and support revenue was $16.8 million, an increase of 4% year-over-year. Services revenue was $5.0 million, a decline of 41% year-over-year. Total revenues were $21.7 million, a decline of 11% year-over-year.

Earnings: GAAP diluted net loss per share was ($0.19) compared to ($0.42) in the same quarter last year. Non-GAAP diluted net loss per share was ($0.13) compared to ($0.08) in the same quarter last year.

Second Quarter Fiscal 2015 Business Highlights

In the second quarter, Covisint:

Was recognized by Gartner, Inc. as a Visionary in its latest "Magic Quadrant for Horizontal Portals," published October 1, 2014. The Magic Quadrant positions vendors on their ability to execute and completeness of vision. This recognition validates Covisint's continued momentum and leadership position in delivering what the company views as the key technologies enterprises need to gain a digital business advantage across their extended network of business partners and customers: security, integration and presentation. Covisint has been named a Visionary in the Horizontal Portals Magic Quadrant for six consecutive years.

Delivered a presentation on cloud computing at the Gartner Catalyst Conference in San Diego, CA. The session titled "The Four Immutable Laws of Cloud Computing," outlined the four concrete laws that any business should follow to maximize its cloud investment with security and efficiency. Covisint Chief Security Officer David Miller's presentation focused on steps organizations can take to manage and overcome cloud challenges when it comes to issues such as identity and user management, real-time access to content over multiple devices, and collaborating with constituents to share sensitive data.

Participated in a panel discussion, "The Value of Standards in Oil & Gas and other Industries" at the Petroleum Industry Data Exchange (PIDX) International US Fall Conference 2014 in Houston, TX. Covisint Chief Security Officer David Miller discussed how standards accelerate the realization of value in oil and gas operations. For the petroleum industry in particular, B2B communication and data standards are key to connecting disparate refiners, suppliers, distributors, marketers and others while isolating and securing sensitive data and specific patented processes.

Covisint monitors these non-GAAP measures to evaluate its ongoing operational performance and enhance an overall understanding of its past financial performance. Covisint believes that these non-GAAP metrics help illustrate underlying trends in its business that could otherwise be masked by the effect of the income or expenses, as well as the related tax effects, that are excluded in non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share and adjusted EBITDA. Furthermore, Covisint uses these measures to establish budgets and operational goals for managing its business and evaluating its performance. Covisint also believes that these non-GAAP measures provide additional tools for investors to use in comparing its recurring core business operating results over multiple periods against other companies in its industry.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors.

Conference Call and Webcast Information

Covisint management will hold a conference call at 4:45 p.m. (Eastern time) today to discuss these results. The U.S. toll free dial-in for the conference call is 1-877-407-4018, and the international dial-in number is 1-201-689-8471. No passcode is required. A live webcast of the conference call will also be available on the company's website at investors.covisint.com.

For those unable to participate in the conference call, a replay will be available after the conclusion of the earnings call on October 23, 2014, through October 30, 2014. The U.S. toll-free replay dial-in number is 1-877-870-5176 and the international replay dial-in number is 1-858-384-5517. The replay passcode is 13592979.

Covisint Corporation

Covisint provides a single entry point for business partners and customers to connect with enterprises that ensures trusted information gets to the right people and place at the right time. Covisint's B2B Cloud Platform enables solutions that allow enterprises and industries to solve complex information and user management challenges across Business-to-Partner (B2P), Business-to-Customer (B2C) and Business-to-Enterprise (B2E) relationships. Today, Covisint powers, secures and connects more than 212,000 business partners and customers to some of the world's leading global enterprises across multiple industries. Learn more at www.covisint.com.

This press release contains forward-looking statements, including statements regarding Covisint's future financial performance, market growth, the demand for Covisint's solutions, and general business conditions. Any forward-looking statements contained in this press release are based upon Covisint's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Covisint's expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Covisint's disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, our ability to attract new customers; the extent to which customers renew their contracts for our solutions; the extent we are able to maintain pricing with our customers at renewal; the seasonality of our business; our ability to manage our growth; the continued growth of the market for our solutions; the success of our channel partner and certified partner strategies; competition from current competitors and new market entrants; our ability to penetrate new vertical markets; unpredictable macro-economic conditions; the loss of any of our key employees; the length of the sales and implementation cycles for our solutions; increased demands on our infrastructure and costs associated with operating as a public company; failure to protect our intellectual property; changes in current tax or accounting rules; and other risk and uncertainties. Further information on potential factors that could affect actual results is included in Covisint's reports filed with the SEC.

COVISINT CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

(Unaudited)

September 30, 2014

March 31, 2014

ASSETS

CURRENT ASSETS:

Cash

$44,168

$49,536

Accounts receivable, net

19,712

21,838

Deferred tax asset, net

888

1,017

Due from parent and affiliates

2,885

2,813

Other current assets

6,007

5,983

Total current assets

73,660

81,187

PROPERTY AND EQUIPMENT, LESS ACCUMULATED DEPRECIATION AND AMORTIZATION